Changes to Faculty Retirement Plan
Ken Horstman and Krisann McMahon from the Office of Human Resources provided an update on a pending change, from Securian to Fidelity Investments, in the record-keeping vendor for the University’s defined contribution plans. As a result of the change, participants in the Faculty Retirement Plan and the U’s voluntary retirement plans will have to review their investments and, in some cases, move them to different funds sometime next year.
The change was the subject of a request for proposals issued by the U in early 2018. Several major providers of these services submitted proposals that were evaluated by University financial staff. The eventual recommendation (Fidelity) to the Board of Regents was made by the Retirement Plan Governance Committee: Chief Investment Officer Stuart Mason, Chief Financial Officer Brian Burnett, Human Resources Vice President Kathy Brown, Retirement Subcommittee Chair Murray Frank, and Faculty Appointee Colleen Flaherty Manchester.
The committee chose Fidelity, and the regents approved the recommendation in October 2018. The change is being made to meet fiduciary responsibilities, align with industry best practices, increase transparency, and streamline the administration of the plans. The change is also expected to improve participant experience by making provisions more understandable and accessible, promote and improve education and counseling services, and restructure and simplify the fund lineup.
While not yet finalized, the lineup will have three tiers: Tier 1 (Do it for me) will be age-based, target-date retirement funds; Tier 2 (Help me do it) will be a core fund lineup of funds; and Tier 3 (Let me do it) will be a brokerage option giving access to a broad array of funds. The Securian General Account and General Account Limited are expected to be available under the new lineup.
For now, everything stays the same. There will be educational sessions in the fall and the change will actually occur in April 2020. Both Ken Horstman, senior director of total compensation, and Krisann McMahon, retirement programs manager, promised to return to speak with us again.
—Bill Donohue, president-elect and chair, Program Committee
Changes in U of M Retirement Plans
Tue, February 26 2019, 1:30pm
Coffman Memorial Union, Room ABC
Our February Living Well Workshop will present a preview of changes being made to the University’s Faculty Retirement Plan (FRP). Specifically, representatives from the Office of Human Resources will present and discuss with us changes in the FRP’s investment company vendor and the voluntary plans, and an updated core fund lineup. These changes will be rolled out during 2019 and should be of interest to all persons with funds in the Faculty Retirement Plan.
In April 2018, the University issued a request for proposals to vendors. This resulted in bids from six vendors which were then subjected to a comprehensive evaluation process. After interviews and discussion, the administration recommended to the Board of Regents in October 2018 that it contract with Fidelity Investments. The Regents approved the recommendation, and the University is now in the process of finalizing a contract with Fidelity. Fidelity will replace Securian, which has been responsible for record keeping and the investment fund options.
The upcoming change has been the subject of consultation with the Faculty Senate through the Senate Committee on Faculty Affairs and its Retirement Subcommittee. UMRA has representation on both of these committees.
The final fund lineup and the details of the contract with Fidelity are still the subject of discussion. We hope to hear from the OHR representatives about the timing of the rollout and education program associated with these changes. Please attend the workshop to hear about the changes and ask questions.
—Bill Donohue, chair, Program Committee
Upcoming Events
We are fortunate to have UMRA member and former Minnesota Landscape Arboretum director Peter Moe to lead this approximately 3.7-mile hike at the Arboretum on Monday, May 6. Plan to have lunch together after the hike at the Eatery café inside the Oswald Visitor Center.
This session will continue the discussion begun in the May 8, 2023 session. See that article for details.
If you currently live in your own home or apartment, have you looked ahead to when you might want to consider a senior living option? Do you have any idea what those options might be? How much they cost? What they provide? UMRA’s May 14 workshop will provide an overview of the world of senior living and the basic information you need.
You’re invited to join the final Family History Interest Group meeting for 2023–24. This will be an opportunity to ask questions related to family history, share insights, talk about recent projects, and suggest topics for next year.
Stephanie Daily will lead the discussion of Fuzz: When Nature Breaks the Law by best-selling author Mary Roach when the UMRA Book Club meets via Zoom at 2 p.m. on Friday, May 17.
The May 20 hike will start at the Historic Lift Bridge in Stillwater and go along the river to the new bridge, cross over and then back on the Wisconsin side, a total of approximately 5 miles. Most of the route is paved. We will eat lunch after at Brian's Bar and Grill in Stillwater. Car pooling will be available.
Climatologist and meteorologist Mark Seeley joined the U of M faculty in 1978 and has been a weekly commentator on Minnesota Public Radio since 1992. We are honored to welcome him as our guest speaker for UMRA’s May Luncheon Forum and 2024 Annual Meeting. He is always entertaining and informative.
UMRA’s Fourth Friday Book Club welcomes back, for the second time, author Julie Schumacher, U of M Regents professor of creative writing and English, for a conversation about her novel The Shakespeare Requirement.
We are in for a treat on June 3! Lynn Anderson, will lead us on trails at two parks near her Monticello home. Bring a bag lunch and we will gather in Lynn's yard along the Mississippi River for eating and socializing after the hike.
Get out to the ballpark with fellow UMRA members for the annual U of M Day at Target Field as the Minnesota Twins take on the Oakland Athletics on June 14 at 7:10 p.m.
Please join us at 9:30 on June 17, 2024 for a walk around Lake Como in St. Paul before attending the UMRA Summer Social and Picnic starting at 11 at the Como Pavilion. A perfect opportunity to get in a walk before we gather to celebrate summer.
Picnic under the covered, open-air Como pavilion, gaze at the water, spy some birds, catch up with friends and former colleagues, and meet new members. We’ll have lunch with plenty of time for visiting and then compete in teams as we are challenged by our Quiz master(s)!
Healthy aging, mindfulness, fighting ageism, and more will be the focus of the third annual Age-Friendly University Day to be held on the U of M Twin Cities campus.